Benefits for employees on commission?

Question

Can a company offer an employee benefits of insurance and 401K but not vac and sick days? Is this legal? This position is not 1099. Otherwise the employee has to work 52 weeks a year.

Answer 1

Workers compensation is usually required but otherwise most States do not mandate that an employer provide health, disability insurance or 401k plans to employees.

If the company is subject to federal regulations it may be required to provide a leave of absence for family emergencies or military service but the legislation does not require that the leave period be paid.

You might be surprised to learn that there are no such things as Federal legal holidays for private-sector employees, whether paid or not.

That's because the Fair Labor Standards Act (FLSA), the "main" Federal law that regulates work hours and pay, does not require private-sector employers to grant any holiday time off to their employees.

The FLSA also does not require public-sector employers to grant holiday time off to their employees. However, legal holidays for Federal government employees are designated by a different law that is specifically for such employees.

If you have no benefits whatsoever and you are, in fact, an employee you have a particularly stingy employer and I would be taking steps to find a more generous employer (I'm sure many have already done that). On the other hand, if you are considered a sub-contractor then it would be normal practice to not provide any benefits other than the 1099 compensation.